Business plan for new clothing company

Business plan for new clothing company The product we are going to distribute is trendy clothing. Clothing must be fashionable so that it can influence on people and it is one of the most important things for people. Particularly, there are two types of clothing: formal and informal. However, the clothing were going to develop is formal clothing. Nowadays, there are a lot of brands, like as ELLE, DAPPER, ARROW and other brands, and they have already got their own customers and they are holding some part of our Myanmar market. We assure that our product is certainly produced with high quality and fashionably designed. Customers will not need to be doubtful and unfulfilled after they bought our product. The target market for our product is concentrated on gender. Besides, we will distribute the other special accessories, such as, sunglasses, purses and wallets, and fancy. Product We have investigated the cloth quality and fashionable design in our factory in Singapore. We will use cotton, which can be adjustable with Myanmar weather, in our clothing. Furthermore, we build the factory and some warehouses in china and the products are separated into many categories _ tops, pants, jackets and coats and others. First, we focused on ladies apparel and accessories such as shoes, bags, belts, scarves and hats. Then, we decided to expand into men wears. We are now starting to introduce our products to market in Myanmar. New trends are always available at our organization for the people who are really into fashion. Benefits We know that all the people want the excellent brand hallmark and the best standard with the best possible price. We have usually coordinated in price and quality effectively that can bring satisfaction to the customers. You can see our new collection for summer, rainy, and winter seasons. We have planned to retail and open stores in some urban areas so that consumers can easily get our goods from their surrounding shopping mall and markets. We are offering diverse categories for both male and female, so both of these customers can obtain their needs from one place our brand. And a lot of people will be delighted with our products. People who pay for our brand will get the feeling of confident, stylish, and smart. Target market We orientate the customers who want to be fabulous and gorgeous. We segment and classify the markets into demographics, geographic, psychographic and behavior. We aim at the adults and youths market _ Generation Y, Generation X and late teens. And they are our core markets. Every religion and ethnic backgrounds can wear our clothing. Our brand will suit with people who are interested in newly fashion designed clothing because we made our products beautifully. And, we have option for clothing expenditures that how much money the customers will spend on the branding product, on average. If you would choose this brand, youll never feel unsatisfied and insecure. You can have a delightful lifestyle. Everyone wont look down upon you when youre wearing them. You will feel like very secure. They can bring pleasure to you. In addition, we have been chosen the most suitable clothing style for Myanmar culture which are simple, but interesting and attracted to people. The chosen collections will be right with Myanmar customs tastes. To consider about the geographic, we do research some inner-urban areas and higher socio-economics regions. Then, we point out not only the cities of Yangon and Mandalay but also the range of some well-known supermarkets and shopping mall. We also make a certain decision for the weather conditions of Myanmar and our selective areas. Generally, we are sure that Myanmar has the finest weather and the climate is not very cold compared with other countries. Thats why we negotiate and make a decision that well share the most convenient and attractive clothes with our Myanmar customers. Head Office location Address : Mortin shopping mall Contact no. : +951501509 Contact mail : [emailprotected], [emailprotected] Customer buying behavior Customers can look around many brands. Theyll have many choices, however when they compare with our brand, they will be persuaded and motivated to buy our products. Although the consumers are passion about it, they will see the quality, color, design and prices. And, it is also crucial that we get the right place. All the people might believe that the items at the shopping malls have security so that they are more willing to buy it. Therefore, we sell our products in better supermarket to attract customer behavior. Consumers make a decision at the shopping centre but it will take some efforts and time to decide carefully. Customer might use and look into the Yellow pages, internet, journals or magazines. So, the data and information put into these papers, but not in details. They can also have a look through our own web page. www.precious.com.sg Our staff will be always on line and we update the data all the times, so you dont have to worry about the fashion is not up-to-date. Product Strategies Product classification Our product can be accepted as shopping goods because people usually compare price, quality and style when they buy the clothes. Distribution channels and promotional strategies shaped on our products and on the customers. We appointed with retailers to sale large quantities. Product life cycle stage The PCL stage is also influenced on our products. We are going to think about the profits and we always need to aware that our price is affordable or not, and we are trying to get knowledge about our competitors fashion trend and the situation of the other markets. Product mix or Product line We have some kinds of sizes for male and female individually. They are small, medium and large for female and S, M, L, XL, and XXL for male. There are several colors for both male and female. Many sorts of types can be obtained. We are giving services, like online shopping and delivery. These are all the items for female: Tops- fashion tops, shirts and tees Jackets and coats- jackets and coats, vests Skirts Pants Shorts Dresses Shoes-flats and scandal, heals and wedges, boots Other accessories The following items are for male customers: Shirts Jackets and coats Suits Pants Shorts Shoes- shoes and socks Brand The name PRECIOUS indicates to our product. This logo will represent our brand. We give the slogan as if you want to be stylish, wear PRECIOUS. Branding strategy We define the producers own brands as branding strategy owing to our products field, the financial background, and the management. Our product field is large, we are well financed, and well managed for our product lines. Packaging We dont have special packaging styles or methods. We just package well to look good and perfect. Distribution Strategies Channel Choice We will use both Direct and Indirect Distribution Channels. In direct distribution channel, we will distribute our product directly to ultimate consumers. We just use our own sales or perhaps telemarketing or online selling directly to consumers. We will perform as manufacturers. In indirect distribution channel, we will distribute our products through retailers such as supermarkets and stores to consumers. And we also use middlemen. Middlemen are important because it is usually not practical for a producer to deal directly with ultimate consumers. We need intermediaries mainly for acting as transport and merchandise agent when we export our products to other places such as Nay Pyee Daw, Mandalay and on. Pricing Strategies Pricing Objectives As we are starting our business, we prefer to have Sales Oriented Goals. We might not look to maximize profit but rather to set a price aimed at increasing sale volume. Price Elasticity As clothing is not only shopping good but also psychogenic need, consumers will usually compare price, quality and style and also buying habits affect distribution and promotion, But the price will be elastic. The price will be change when increasing demand. Market Entry Strategies We will enter the market with by using Market Skimming Pricing Strategy. Because our product is setting a relatively high initial price as our target market is for elite customers. By using this strategy it can help to establish a high-quality image for our new product and provides the firm with pricing flexibility. Another point of view why our product is suitable for that strategy the reasons for that are our product is in the early stages of life cycle and our new product is distinctive. Product cost When we setting up the price. There are two types of cost, variable and fixed. Wages and salaries, tax and insurance, machinery costs and vehicles and equipments are fixed costs. Raw material cost, electricity, delivery and advertising are variable costs. Price Setting Methods We will use Cost-plus pricing method. (Total cost +desire profit) is also call mark up pricing. Evaluation of cost-plus pricing (Budgeted) Planned=10 Cost, Selling price, Profit Budgeted Labour and material costs per cloth $20 Overhead (fixed cost) $25 Total cost per unit = $45 According to the calculation budgeted selling price per unit = $45+$4.5 = $49.5 per unit Break-even analysis It is important to meet break-even point for our company otherwise we cant make profit and also cant imagine for the good will of our company. We wish to find out how many units must be sold to cover all cost. So we used Break-even analysis. The equations for Break-even point is Break-even point, in units= Total fixed cost Selling price per unit average variable cost per unit ($) Promotion strategies We will always inform and remind about our ultimate goods to our usual customers and the other new customers. Well apply the advertising method and sale promotion method to publicize. Well use 10% of annual profit for our products promotion. Advertising Well not use the broadcasting through TV channels. At first, well print in the famous magazines and journals to recognize by the public easily. Then, well emphasize on the outdoors advertisements _ billboards and bus sides so that a lot of people will notice our product now and then. Sale promotion We have prepared some contests to become familiar with some business people and consumers. Well put more stress on trade shows and in-store displays. We have hired the ball room in Traders hotel (Yangon) and Sedona hotel (Mandalay) to make our first trade show in Myanmar. And, we have well organized to start our trade show. After that, we are going to display our latest fashion designed clothes in some big department stores. We also get ready to allow for the member cards if you become our loyalty customer. We have gold, silver and platinum cards for our customers. You will see amazing rewards when you come to our . You can do members at our web page. If you got a profile in our websites, you can see and shop our recent items on line. We make the offering 10% off. Youll see our astonished plus offers and rewards. SWOT Analysis Strengths Well design, best quality and we also use tight quality control strategies. Therefore, our products have better quality than any other competitors. Legally import from china. Well packing to avoid damage by transportations. Only sell qualified products there is no damage items. Weakness Selling price may b a bit problem for ordinary class customers because of our products target market is for elite customers. Distribution direct from manufacturers to the retailer so we arent sure the retailers do their work perfect or not. Our company is newly established. As we are in introduction stage, the awareness of people about our brand may be smaller even though our product is nice. We need lots of promotional strategies than other existing competitors to penetrate the market. Opportunities We allow some opportunities for our customers and also authorized agent too. If a customer buys goods for 200,000ks within a month we give him/her 5%discount card up to two years. For authorized agent if their revenues touch the focus target we allow them to get feedback 5% of their revenues as bonuses for them and also free trips to China. Threats One biggest threat for our product is that there are lots of famous competitors. Delay transportation, for example, when we import out products from China by ship if the weather is terrible our stocks will be delay. We have to sell our products according to the weather if our stocks are delayed we cant sell these delay product on that time. If we are going to sell those products in coming season it is sure that our products are not up to date. Another one is inflation because of that the value of Myanmar Kyat became low so when exchanging money fluctuation is threat for us. Action Plan We will provide our customers with the best quality products. By giving opportunities helps our firm to increase the volume of sales. Make our product well-know and satisfying consumer wants by developing goods and special service. We fight our main competitor by making priority of consumer wants on the other hand their weakness is they only focus on making money by selling men wears whereas we make satisfy our consumers by selling both genders and also accessories for both of them and also discount systems. We will build trust with our consumers and let them know that our product is reliable and qualified in these ways we hope to build strengths and to overcome our weakness. .